Court orders Russia to pay US$1.6m to Lviv-based business for sunflower seed loss in Luhansk Oblast

Serhiy Melnyk — 24 October, 20:24
Court orders Russia to pay US$1.6m to Lviv-based business for sunflower seed loss in Luhansk Oblast

The Commercial Court of Luhansk Oblast has ordered Russia to pay UAH 65.36 million (about US$1.6 million) in damages to Oliiar, a private business that lost sunflower seed stock when its warehouse in occupied Svatove was seized.

Source: the court ruling

Details: In October 2021, Oliiar signed a contract to buy 4,700 tonnes of sunflower seed harvested that year from Prydniprovske Agrarian Company LLC. It also made arrangements for Svatove-Ahro LLC to store the harvest.

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The supplier delivered the full consignment of sunflower seeds to a warehouse in Svatove operated by Svatove-Ahro.

As of 24 February 2022, the facility had dispatched 2,592 tonnes to Oliiar, leaving 2,107 tonnes in storage. After the full-scale invasion began, Russian armed groups seized the warehouse premises where the crop was being stored.

The court found that Oliiar had provided conclusive evidence that the loss of its crop had been directly caused by Russia's armed aggression and ordered Russia, represented by the Russian Ministry of Justice, to pay UAH 65.36 million in compensation, an amount determined by an expert valuation.

Oliiar is registered in Pustomyty, Lviv Oblast. Iryna Zalizna is the registered founder, and Iryna Podoba is its director.

Background: Earlier, the Commercial Court of Luhansk Oblast ordered Russia to pay UAH 51.67 million (US$1.25 million) in damages to Trading House Agrokhim LLC for the loss of property in Svatove, Luhansk Oblast, and Kakhovka, Kherson Oblast.

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